OLYMPIA – The Washington Department of Financial Institutions (DFI) closed The Union Credit Union of Spokane, Wash. today, citing loan losses resulting in negative equity. Immediately following the closure, DFI named the National Credit Union Administration (NCUA) as the liquidating agent of The Union Credit Union.
The NCUA immediately signed an agreement with Alaska USA Federal Credit Union of Anchorage, Alaska to assume certain loans and assets and Numerica Credit Union of Spokane Valley, Wash. for all deposits and membership. The Union members should not experience any interruption of credit union service. The National Credit Union Share Insurance Fund (NCUSIF) insures The Union member individual accounts deposit funds up to $250,000.
“The Union struggled primarily due to the unemployment of its members,” Linda Jekel, Director of DFI’s Division of Credit Unions explained. “This resulted in a high number of delinquencies, loan charge-offs, negative earnings and low net worth.”
“The failure of The Union — the first credit union closed in Washington State — is a clear example of the consequences these unusually difficult economic times bring to our financial institutions and their members,” DFI Director Scott Jarvis said. “We are pleased, however, to see depositors transition to another local state-chartered institution.”
The Union Credit Union, headquartered in Spokane, Wash. has only the one branch after closing its Kennewick branch earlier this year. Members of the Bricklayers Local 3 Union organized the Union Credit Union in 1968.
Throughout the weekend and transition, The Union customers can access their funds by writing checks or using ATM or debit cards at Numerica branches or with any credit union that participates in the CU Service Center® Shared Branching Network. The nearest Numerica Credit Union branch is at 301 North Havana, Spokane, Wash. To locate a Shared Branch in your area, visit www.cuswirl.com or call 1.888.287.9475. Checks will continue to be processed. Loan customers should continue to make their payments as usual. Online services also will remain available.
Depositors will be contacted by Numerica Credit Union and members with loans will be contacted Alaska USA directly by mail for additional instructions. Any member who has not received a letter from Numerica and Alaska USA concerning their share and loan accounts by Nov. 5, 2010 should contact the Credit Union Service Center at 866.242.0715. Depositors with additional questions may contact: Liquidating Agent, National Credit Union Administration, 4807 Spicewood Springs Road, Suite 5100, Austin, TX 78759 or call 512.231.7900.
As of Sept. 30, 2010, The Union Credit Union had total assets of $11,837,805 and total deposits of $11,817,242.